05/04/1979 Council Minutes - Laserfiche WebLink

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1 1 1 May 4, 1979 present; Kulaszewicz, Schneider, Zelinka, Absent; McLean. 239 This meeting had been called for the purpose of discussing the gas pro- blem in Ulmer's Reice Lake Addition. Mayor Karth had requested both Circle Pines Utility Commission and North Central Public Service to be present to discuss service and retes. Mr. Zelinka said, that since his is a member of the Circle Pines Utility Commission, he will not make or second motions. The rate structure of both companies was discussed and ti was felt that the rates are comprable. The basis difference is in the installation of the mains and service lines. The matter of available gas was discussed with North Central saying that they can service the area immediately and Circle Pines unable to commit service to the entire area at this time. Circle Pines has a policy of 'first come, first served'. There was some questions to North Central on the matter of the delay in time for providing service to areas - it was felt that some of the homes in the Shenandoah area are still on propane. The representatives from North Central said that project has just been completed and the tanks are all disconnected even though some have not yet been removed. The matter of service to Shenandoah III was discussed and it was felt, due to the necessary construction of sewer and water lines, the gas company would be unable to start construction in that area until late this fall and possibly next Spring. It was felt that North Central has the edge on Circle Pines in both areas of charges and gas supply but the Council was concerned on the effects this would have on this City's possible purchase of their portion of the Circle Pines system. At the present time, there is $70,000.00 in outstanding bonds on the Lino Lakes portion of the system plus, the system shows $109,000.00 deficit. There is approximately $95,000.00 in fixed assets. There was a question of why would this City want to own a gas system. The possibility of this City receiving a portion of the profits was dis- cussed. The question of what happens to the profits at this time arose and Mr. Otto said they areused for capital expansion. There was some discussion of the charges and what happens to the profits remaining. Mayor Karth suggested a compromise to this problem. Morth Central oould serve Ulmer's Rice Lake Additions I, II, III, to include the 40 acres on the NOrth East corner of Elm and Sunrise Avenues. The area to be served by Circle Pines would be extended from the South of this area to the edge of the County Park Property along Baldwin Lakes (Approximately 100 acres) with Circle Pines to pronect the usage of this area in order for gas to be available Shen construction begins. This would be a sewered area so the density would be doubled that of the Rice Lake Area. Mr. Schneider moved to designate the 87 lots in Ulmer's Rice Lake Add. to be serviced by North Central with future planning and research to be studied at a later date. Seconded by Mr. Kulaszewicz. Motion declared passed, with Mr. Zelinka abstaining. There was discussion of what has already been paid 13y Mr. Ulmer and there